Journal Article

Globalization and local profiles of economic growth and industrial change

Wolfgang Dauth and Jens Suedekum

in Journal of Economic Geography

Volume 16, issue 5, pages 1007-1034
Published in print September 2016 | ISSN: 1468-2702
Published online July 2015 | e-ISSN: 1468-2710 | DOI: https://dx.doi.org/10.1093/jeg/lbv028
Globalization and local profiles of economic growth and industrial change

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The aggregate German economy is characterized by a secular decline of manufacturing and a rise of modern service industries. This trend of structural change is not uniform across space, however. Some regions exhibit it at an accelerated pace, while other regions reinforced their manufacturing specializations. We first categorize all German regions into one of three groups, with ‘pro-trend’, ‘anti-trend’ or ‘featureless’ growth and provide a detailed comparison of these groups. Afterwards we propose an explanation why a particular region ended up in one of those groups: We argue that the profiles of regional growth and change are systematically related to the initial sizes, and the import and export exposures of the local manufacturing sectors.

Keywords: Structural change; local industry compositions; trade exposure; local employment growth; R11; O14; F16

Journal Article.  11063 words.  Illustrated.

Subjects: Urban, Rural, and Regional Economics ; Economic Development ; International Trade

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